Eagle Materials Inc (EXP)

Liquidity ratios

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 2.62 2.61 2.72 2.68 2.45 2.36 2.48 2.39 2.13 2.14 2.50 3.87 3.91 3.24 3.98 3.86 4.00 3.11 2.50 2.42
Quick ratio 1.04 1.09 1.34 1.32 1.07 1.15 1.44 1.34 0.98 1.02 1.79 3.02 2.55 2.22 2.95 2.59 2.35 1.63 1.21 1.00
Cash ratio 0.15 0.22 0.21 0.23 0.07 0.29 0.38 0.30 0.09 0.09 0.65 2.03 1.66 1.34 1.69 1.00 0.70 0.77 0.28 0.10

Eagle Materials Inc's liquidity ratios show fluctuations over the past several quarters. The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has generally been above 2, indicating a healthy liquidity position. However, there was a significant peak in the current ratio in the third quarter of 2021, followed by a noticeable decline in the first quarter of 2022 before stabilizing.

The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, also demonstrates variability but generally remains above 1, suggesting the company can cover its short-term obligations without relying on inventory liquidation. However, there were some quarters where the quick ratio dipped below 1, indicating a weaker liquidity position during those periods.

The cash ratio, which focuses solely on the ability to cover current liabilities with available cash and cash equivalents, shows a more volatile trend compared to the other ratios. While the cash ratio has experienced fluctuations, it generally indicates a lower level of liquidity compared to the current and quick ratios. The cash ratio was notably high in the first quarter of 2022 and the third quarter of 2021 but decreased in subsequent periods.

Overall, Eagle Materials Inc's liquidity ratios suggest a generally stable liquidity position, with the company able to meet its short-term obligations using its current assets. However, the fluctuations in the quick and cash ratios indicate some variations in the composition of current assets and the level of cash reserves over the analyzed periods.

Additional liquidity measure

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 87.51 79.35 84.06 83.31 77.22 63.35 68.68 75.04 67.25 66.67 73.46 74.48 74.05 74.86 81.97 112.74 118.61 74.07 90.61 94.45

The cash conversion cycle of Eagle Materials Inc has fluctuated over the past several quarters. The company's cash conversion cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Between March 31, 2019, and March 31, 2024, the cash conversion cycle ranged from a low of 63.35 days in December 2022 to a high of 118.61 days in June 2020. It currently stands at 87.51 days as of March 31, 2024.

The trend in the cash conversion cycle indicates that the company went through a peak cycle in mid-2020, with a considerable lengthening of the cycle, possibly due to challenges in managing inventory or collection of receivables. Since then, there has been some improvement in the cycle as it decreased towards the end of 2022 but then increased slightly in recent quarters.

It is important for the company to continue monitoring and managing its cash conversion cycle efficiently to ensure that it keeps the cycle as short as possible. A shorter cash conversion cycle generally signals better liquidity and more efficient operations.